The corporate SCS is a comprehensive plan to monitor and guide enterprises in China with the usage of technology. Any enterprise that is registered in the PR China (excl. Hong Kong, Macao and Taiwan) is affected by the corporate SCS. Enterprises may obtain negative or positive ratings and face either sanctions or preferential treatment, depending on their scores.
In practice most relevant are sanctions and preferential treatments of tax and customs authorities as well as authorities in charge of product quality. Many of the information collected on the companies are publicly available on the internet, such as on the official credit website (only in Chinese). For a foreign invested company, it is crucial to maintain proper internal control functions to assure compliance with the relevant Chinese laws and regulations.